E124 | Should You Tell Your Banker You're Shopping Around?
About this episode
Garrett Ruskamp discusses the importance of treating interest rates like any other farm input and shares his experience of shopping around for better loan rates.
Episode Summary Are you treating your cost of money like every other input on your farm? Because that's the question I had to ask myself recently. We're in the middle of a land deal and I had to decide whether or not to tell our banker we were shopping around with FSA and Farm Credit for a better rate. Sounds simple but it wasn't. All the usual stories ran through my head, what if he takes it personally, what if it damages the relationship, what if there's repercussions down the road? In this episode, I walk through it.The resistance I felt, the conversation I actually had with my banker, and what happened when I just told him the truth. I also get into why most farmers never shop around for interest, even though we'll spend hours chasing a better deal on seed or fertilizer. The short answer: it's uncomfortable, and we feel powerless to the bank. But here's the reframe: interest is deductible, just like every other input. And your banker is a salesman. The bank sells loans. If you don't treat your cost of money the way you treat every other expense on your operation, you're leaving real dollars on the table. In this week's episode on interest rates: Interest is just another…
People in this episode
Host: Garrett Ruskamp
Mentioned in this episode
Organizations: FSA, Farm Credit, bank
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